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Social Security for Company Owners and Managers in Bulgaria (2026)

If you own and run a Bulgarian company, you generally have two ways to be socially insured: as a self-insured person (самоосигуряващо се лице, often shortened to СОЛ) or under a management and control contract (договор за управление и контрол). The choice changes your monthly cost, your social rights, and how the tax authority treats the money you take out. Here is how it works in 2026, including the points that matter for non-residents.

Current as of 23 September 2026. Bulgaria joined the eurozone on 1 January 2026 (€1 = 1.95583 BGN), so amounts are in euro. The 2026 State Social Security Budget Act was published in State Gazette No. 68 on 28 July 2026. Its new floor and cap for insurable income apply from 1 August 2026, so 2026 is a split year: one pair of limits for January to July and another from August. General information, not tax or legal advice.

Two regimes at a glance

Being insured is not optional. The only question is on what basis:

• Self-insured owner: you are insured as an owner who performs personal work in the company, without an employment contract or a management contract. You choose your insurable income between a floor and a cap and pay the contributions yourself.
• Management contract: you sign a written contract to manage the company for remuneration. You are then insured like an employee, on the agreed remuneration but not below the statutory minimum for the position.

This matters even if you never physically live in Bulgaria. An owner who actively manages the company is expected to be insured on one of these bases.

When you are self-insured

This is the typical case for the sole owner-manager of an EOOD who runs the business personally, without a management contract. As a self-insured person in 2026:

• you choose a monthly insurable income between a floor and a cap: €550.66 to €2,111.64 for January to July 2026, and €620.20 to €2,300 from 1 August 2026;
• the rate is 27.8% (minimum package: pension fund, supplementary mandatory pension and health insurance) or 31.3% if you voluntarily also insure for general illness and maternity;
• you are not insured for unemployment.

Worked example. A sole owner-manager insured at the floor from August 2026 (€620.20), without the maternity option: €620.20 × 27.8% ≈ €172.42 per month. It was €153.08 on the €550.66 floor until July. The company’s profit is taxed separately at the 10% corporate rate, and money you take out as a dividend bears 5% dividend tax.

When you are on a management contract

If you sign a management contract with remuneration, you are insured under the rules for employed persons. In that case:

• the insurable income is the agreed remuneration, but not below the statutory minimum for the position and not above the monthly cap (€2,300 from 1 August 2026; €2,111.64 until 31 July);
• you are insured for all social risks, including maternity and unemployment, which is broader cover than a self-insured person gets;
• contributions are split between the company and you (the employer part is borne by the company);
• tax and contributions are withheld and paid monthly, as with a salary.

A management contract is not an employment contract. It is governed by the Commerce Act, not the Labour Code, so it does not carry Labour Code paid leave, working-time rules and so on. For tax and social-security purposes, however, the remuneration is treated as employment income.

Worked example. A manager on a €1,500 monthly management contract: the personal share of contributions is €1,500 × 13.78% ≈ €206.70, the company share is €1,500 × 18.92% (including the minimum 0.4% accident insurance rate) ≈ €283.80, and personal income tax is 10% of the remuneration after the personal contributions (≈ €129).

Side by side

What this means for non-residents

• You do not need to live in Bulgaria to own and manage a company, but active management usually creates an obligation to be insured here. Whether contributions are actually due in Bulgaria can also depend on the EU social-security coordination rules (A1 certificates) if you are insured in another EU/EEA state. Get this checked before you assume nothing is due.
• Salary or dividends. A management contract gives you a regular, declared monthly income you can draw, rather than waiting to distribute profit. Dividends bear the 5% dividend tax on top of the 10% corporate tax; see the corporate tax guide.
• Getting the basis wrong is a common error. Taking money out as an owner without any insurance basis, or setting a management remuneration below the statutory minimum, are classic triggers for a correction by the NRA.

Insurance on multiple bases

Owners rarely have only one source of insurable income. If you are employed somewhere, self-insured on another activity and/or a manager under a contract at the same time, the rules for insurance on multiple bases apply:

• contributions are due on each basis, but the combined insurable income is capped at €2,300 per month from 1 August 2026 (€2,111.64 until 31 July);
• income from employment and management contracts counts first, and as a self-insured person you pay only on the difference between that income and the cap (Art. 6(8) of the Social Insurance Code);
• amounts paid above the cap on several employment-type bases can be recovered after the year ends.

In practice, if you are already insured up to the cap on a salary elsewhere (including in another country under the EU coordination rules), your additional insurance as an owner may be minimal or health-only. This has to be calculated, not assumed.

Coordination if you are insured abroad

For non-residents this is the point that saves or costs the most money. Under EU/EEA social-security coordination, you are generally insured in one state at a time. If you already contribute in another member state and hold a valid A1 certificate, Bulgarian contributions on the same activity may not be due. An A1 is not automatic, though. It is issued by the competent institution based on where you actually work and live, and cross-border management can create genuinely ambiguous cases. Document your position before you set up payroll.

Total cost: a combined view

To see the real weight, combine the taxes. Suppose your company earns €100,000 of taxable profit and you take part of it as a €1,500 monthly management salary and the rest as dividends:

• corporate tax: 10% on taxable profit;
• your salary: insured and taxed at 10% personal income tax monthly, with the company paying its 18.92% employer share;
• dividends: taxed at 5% on the distributed remainder.

The management salary is a deductible expense for the company and gives you social cover. Dividends are cheaper in tax terms but carry no insurance. Most owner-managers use a mix, and the right balance depends on how much cover you want and how much you draw each month.

How to choose

• Want the lowest monthly cost and run a small or early-stage business? Self-insurance at the floor is often the sensible choice.
• Want full social rights (sickness, maternity, unemployment) and a stable monthly income you can draw? A management contract fits better.
• Either way, the insurance regime is part of the total cost of running the company, so factor it in when you plan your company formation and pricing.

FAQ

Can I be self-insured and on a management contract at the same time? For the same company you choose one basis. You may be insured on multiple bases across different roles, subject to the maximum monthly insurable income of €2,300 (€2,111.64 until 31 July 2026).

Which minimum applies to a manager on a contract? The minimum insurable income for the relevant position and economic activity for the year. If the agreed remuneration is higher, you are insured on the higher amount.

Is the tax different? Yes. A manager’s remuneration is employment income, taxed at the flat 10% personal income tax after the personal contributions and withheld monthly. A self-insured owner has no salary to tax: the company’s profit bears 10% corporate tax, and whatever you take out as a dividend bears 5%.

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Choosing between self-insurance and a management contract affects your contributions, taxes and social rights for years. We handle accounting and payroll for Bulgarian companies: we set up the right regime, file the declarations and track the thresholds. See our pricing.